tv [untitled] August 1, 2010 4:30am-5:00am PST
have any announcements. >> okay, the next item and is item 3, directors report. >> pam, do you want to give this report? >> good morning. pamela levin, deputy director of financial services. i'm pleased to announce that we are on track to end the year with a positive fund balance. at this point in time, we are still closing the year, departments are still charging us for work orders. we are still doing entry to move monies around in terms of transfers and -- so it is still kind of a preliminary, still have not calculated deferred credits, but as of now, we are projecting to take our fund balance from $553,000, where we ended last year, by $3.49 million, to the total of $4.3
million. staff will only fund 21.1 days of payroll, and i just wanted to add that i would to some training yesterday with controller's office of emergency management, and one of the things they said was departments need to maintain a positive sign balance in the event of an emergency because that is what we would need to draw on initially. so i think we have done well in controlling our revenues. one of the things is that we have done a really good job in bringing in additional revenue. in terms of the way the revenue is proposed, we would have a total of $3.95 million before you drop money into the fund balance. as of that, $3.41 million is in the apartment, until, and hotel
license fee. we are still under recovering in housing, but those increases that we establish for the 2009- 2010 fiscal year has yielded additional revenue. we are still having some bumping around in terms of the revenue for apartment license fees. there are some entries that the controller's office is making, adjusting some errors that occurred. we're still looking at whether or not all the appeals have been injured, you know, have been submitted. that number could still bump of around before the real and of the fiscal year, which is the accounting and, which is usually in some timber -- could still bumper round before e d bend bu --mp around before the real end.
we still charge revenue service. $1 million of that is for intergovernmental agreements. for instance, we are finding a larger agreement plan review project for us for the exploratory and, the chance they terminal, the chance of a joint authority --transbay terminal, a joint authority. the puc with their new office building, brought in revenue this last year for our planned review. what this means to me is that we did a good job and in terms of revenues of the ongoing height of service, and because $1 million of the increase -- the $1.3 million increase was for the intergovernmental. we also have had a roughly $679,000 of refunds. this is -- the concept of the
refunds is basically, we are paying current year revenue for prior year -- some current year, but prior year plans. so people who have committed -- submitted a plan for inspections and paid s in the prior fiscal year, we're refunding them in the current fiscal year, so, hopefully, this will kind of ratchet down. the refunds are very time consuming for our staff. they, you know, are difficult in their own way, and we are really hoping that that will decrease when the economy starts to get better. when you exclude a mou's from the overall revenue, we're looking at 1.7% increase. that to me is a very modest increase between how we are
originally prepared the budget and how we ended the budget. that is not to say that we were so great in preparing our budget, but at least this year, we did not have -- end up in a negative stance. the big news in expenditures is that we are projected to end up with a savings of 1.2% of the budget, and that is, again, shaving the bottom. it is containing costs, and one of the things this does not take into account, and we need to be cognizant of, is that we will have to be prepared for some of the contracts, the professional services, and we also have some payments that still have to be made for the year ending june 30. i think overall, it is good news, but i think that we need
to continue to be, you know, cognizant that the economy has not made this huge recovery. we are still trying to maintain our own, and i also wanted to let you know that we are filling positions that have been vacated by people that have retired and are trying to get some temporary help. while we were having a previous meeting, i had a discussion with the mayor's office, and they are processing lead divisions will putting through, and we have a very compelling story of why we need these positions. to give you an idea, the general fund position, the general fund dept. on spending plans. they are really tied in terms of whether or not they can fill positions, but the bears office has stated that we can control
our budget -- has faith that we can control our budget and not overextend next year. any questions? >> so we will be hiring back some of the staff laid off? is that the concept? >> we will have to hire back for the permit positions of the full list that exists. if there are no positions on the holdover list, we will have to recruit through the normal recruitment process, but in the meantime, we can fill them with temporary people, which we are trying to take up the whole list, also. great. maybe not our specific employees, but employees from the city that are on the list. great, thank you. >> the $553,000 that you have in the fund for revenue for
payroll -- you said you went to the controller's office are we increasing that? >> what we have this we need to have, if you will, a cushion for unexpected events, including but not limited to what we call catastrophic events such as earthquakes and fires and whatever because of those. that needs to cover the payroll for us, and because, probably, we're not going to have during the recovery, the initial time, is buried levels when you get into emergency recovery, but in the initial period of time, we will not be having people coming in submitted projects to us. probably in the recovery time,
we will, but in the initial, so we have to be able to cover the payroll for that initial time. in a catastrophic event of getting any -- getting the six- something magnitude -- what is it called? anyway, magnitude 6 earthquake or something to that effect, there is some sort of measure -- richter scale. great. if we were into that kind of situation, having, you know, the 553 we ended last year would fund five days. we would have to somehow or other obtain funding for our people from another source. so the controller's office looks
to us to be able to cover our payroll to continue during that time, so when we end the year and add more, based on this plan, we would end at $4.3 million. that still is only 29.1 pace -- paid days. it is the payroll in little over a month and a half. that is not enough. that is the point i'm trying to make, that we need to be prepared for an unexpected type of event. >> our customers are not bringing it in right now. do you have any suggestions on how we might get that fund up? >> just so you know, we are increasing our work order with the port to do more internal
plan checking for the port until the customer base does increase some, so we'll be doingmou work with the port, so that will bring in additional revenue that can be completed by current staff but can be put forward into the operating fund at the end of this fiscal year, the one we are currently in now, so we are projecting in the budget that this both to the board of supervisors, that we will be adding to the fund balance each year from now on, not taking from the fund balance, so that is the plan going forward, that we will not prepared a budget and present the commission with a budget that will be pulling from the operating fund. we will be balancing the budget with current funds against current funds and adding to the operating fund balance each year. >> the other thing is that to the extent that we are seeing more projects come through,
because they can defer their impact fee payment, if that concept works, we may get larger projects because some developers have been waiting for something to be, you know, and the test to be able to bring in stuff, and we are seeing that right now. what would be a comfortable balance in that fund? a couple of million dollars? -- >> what would be a comfortable balance in that fund? a couple of million dollars? they could say let's take it out and put it in the general fund, which they have done in the past. >> that is something i keep hammering home to the various entities that could make decisions on our budget, that we need to maintain a fund balance, and it should not be used for anything other than repairs, but you hear anything from having six months of payroll, which is in the $16 million
range, which, as we know, when we were in the $14 million range, of the money was siphoned off and used for other projects. it is really kind of -- i think the best thing we can do is continue to keep in mind and remind others that we are good stewards of our money and that we need to make sure that we are prepared and that we are self- sufficient. >> we also now have the support of the mayor's office, and there is a recovery initiative out there and recovery program that also directs departments to start looking toward what their department would need in the event of a catastrophic emergency, and controller's office is recommending certain fund balances, even in the general fund for a rainy day fund, and that is, from what i
understand, at least six months of payroll. commissioner hechanova:, have a couple of questions. this much is the accounting semantics with the projected increase in revenue of $3.9 million is due to -- there is a line there that says $134,000 shortfall in revenues in the interest and investment base. could you explain that to me? >> yes, what happened is that when we prepare the budget, depending upon what you are seeing your fund balance is going to be, you calculate, you know, a best estimate on the interest rate and then prepare the budget, and in this case, our budget was $332,000, and we are bringing in $198,000 in interest and investments, so essentially, what we are doing is next fiscal year, we have
ratcheted down on that. one of the things we looked down -- we look to cont what theroller's -- we looked at is wha ttht the controller's offics doing. we're projecting we're not going to get much more next year than we did this year. >> that is what you are trying to match up to moving targets? >> lots of moving targets. >> second question, and this might be more in the category of the incoming, is there anticipation of a the projected revenues that would come in to thedbi as it is this the to sea --the dbi as it is associated with the -- it has a moving target for the next three to five years. >> we have been in talks on this because the america's cup is proposing to take several of the
port buildings, and we have a meeting this afternoon with the port to discuss work orders with the port and how we would address emergency for expedited planchettes' for this. the work would have to be completed very quickly, and how we would manage that. we were talking this afternoon on it, so, yes, there would be another increase revenue because the port would -- they have asked to have a plan check, some of the plans that would develop. -- that were developed. >> thank you. he had done a great job. >> i would like to bring the commission of to what happened last night at the budget meeting in case you have not read the papers. they did finally passed the budget. there is four pages of at backs, and we have not been able to actually be viewed as yet.
we will review them later today, and we will send the commission a copy of all the figures that we get, but from what we understand, our budget was passed. >> thank you. >> is there any public comment? seeing the and,3 itemb is update on proposed legislation -- seeing none, item 3b is of the on proposed legislation. >> after we lost our monitoring fee legislation last august, it has finally been passed and will become effective august 16 of this year, so that means we will be able to collect in for some of these -- enforcement fees at a reasonable time. we will be collecting the not five or six years after the fact, so that as part of this legislation that will become
effective august 16. we also, per the suggestion of the mayor, i did send a memo to the mayor on july 9 explaining why we are requesting a june 2011 trotter amendment to change the name of the department to the apartment building safety, and i will send a copy to all the commissioners. one of the main reasons is we put in the same position in seven cities throughout the nation, chicago and new york, all have some kind of variation on the name apartment building safety -- department building and safety, etc. and so forth. that is the more modern name rather than the department of inspection, which is more interested now or more regulatory, so we want to be the helpful department, rather than the department of just straight code enforcement.
so we are doing that. we have new legislation being referred to thecac -- referred to the cac from other departments. there are some modifications to the gray water ordinances, and it is all to other departments, so they will be referred to the cac for review and referred for action. that is all i have. we will talk about each specific ordinance as it comes back further on in the agenda. >> also, yesterday, the board approved a bond to four. this is a real effort of this commission and this department -- a bond to forward. hopefully, we will all work together to get it passed in november. >> the board of supervisors
approved the charter amendment to the bond for the seismic grant program and for low-income housing and affordable housing and for some public buildings that need seismic retrofitting work on them, so this was a big advance it towards our soft story legislation and our mandatory stop story legislation. it was approximately $46 million, $47 million, in that range, so a very robust program that will move some of our recommendations forward, so thank you for -- thank everybody for working on that. >> how long do we get to pay it back? >> usually 20. some of it will be loans, and some of it with the grants -- some of it will be grants, from what i understand. >> any public comment?
3c is of data and permit tracking systems. >> we have all of the input back from planning on the new rfp we are putting out -- we have an update some planning. we have changes at our apartment once. we are in the process of merging them together, and we will be sending them to all the city departments prior to the issue in some of therfp. -- issuance of the rfp. this will be supplying all the licensing to what we already have on inflation and allowing other departments to come on after the initial implementation with planning. it is a different way of looking at the rfp, and it is more with dbi paying for the core system through the process that other
departments will be using. >> is there a target timeline? >> we are trying to get the rfp out before the end of the year. >> public comments on this? seeing none. >> good morning, the commissioners. i just wanted to reiterate the importance of getting this system in place. i recognize that the first step was to put it on the agenda and get it tracked so we could monitor the system and watch it for continuous improvement, and i welcome that development and look forward to seeing it
evolves and become an efficient system that might be a shining light for the rest of the nation for the people to be used by the people. thank you very much. >> and more public comments? seeing none. >> item 3d, updating activities on the administration of the department. >> yes, we are preparing and doing the final walk-through on our fourth floor remodeling project and getting ready to move our stop from 1650 over 21660, which will mean a reference department will be on the fourth floor of the entire records department. we have fire plan checksd andpw -- fire plan check and dpw fire planchette, and we will vacate 1650, and we have another tenet
ready to move in, which means our rent will be reduced also, which will mean more income for our operating fund. we currently have budgeted at the rate of rent we are paying now, so that will be a reduction in iran. the other thing that is happening right now is we have implemented several changes, and i will be writing all of the operating procedures for the department, but to do that, first, i have to write theab -- the ab regarding how to write an office report, and i will bring that back to the commission so we can get it completed, so i can write the office t seizures. that will be coming to you probably in september -- the office procedures. that will be coming to you probably in september. >> public comment? see 9. >> item four, public comment.
bic will take public comment on matters within its jurisdiction and not part of the agenda. commissioner murphy: you have three minutes. >> thank you. good morning, commissioners. i just wanted to mention one thing that is that we have had a lot of layoffs at dbi, throughout the city because of the economic situation. one thing i noticed and i was impressed by, really, was that nearly having retired a few weeks back, the director is working on the first floor hands-on. i think it is really great to see her down there, and i think everybody likes to see the director is not just sitting up on the sixth floor. they really want to be hands on on the first floor and dealing with the customers and staff.
thank you. commissioner murphy: 90. next speaker please. >> commissioners, first of all, on the fifth floor, it is really working very well. it is a good system. but the one little thing that gives us trouble oftentimes, from an applicant's point of view is it was usually the wait time to pay, and you get the thing finally issued. it takes a lot of work. it is a good hour to an hour- and-a-half. we are sitting there on the fifth floor twiddling our thumbs, waiting to get someone to take our application. we are happy to pay the fee, but it takes an hour and a half, and it is a constant kind of irritation, so i just bring that to your attention to areas other than that, the fifth floor is wonderful. we can go from station to station a real quickly and get the information we need, even if
we are filing for a permit that day or not. thank you very much. commissioner murphy: next speaker please. >> good morning, commissioners. i'm here to go over a complaint i have filed with the department of building inspection, back on april 19. the unit under construction just below my unit has been working without the proper permits. i have filed a complaint, and just today, i have heard that the inspector from my district is going out to speak to the owner. i have a few photos i would like to show you because the work is causing severe damage to my unit, and i have been pleading for assistance from department
building inspection. i do not know if it is due to budget cuts and work furlough days that nothing has been addressed for three months, by -- anyhow, here is a copy of my complaint, and i have some before and after pictures of what it looks like, and you can see that permits are not exactly true. right here, you can see this is what the original structure look like on each wall of our building. this was the original entrance under construction of the unit at 1824 mean streak. this is one that they moved to the exterior wall, which started only major damage to my unit. i have given a packet to ann,
too, for some of the commissioners. here's what the structure looks like now. here is more photos of what the unit is looking like now, which is quite a bit of an additional square footage. the damage is done to my unit are severe cracks in my granite counter top, severe cracks all throughout my unit. that is over my stove. walls, ceilings. on march 10, my tenants came home to a major home -- hump in my hardwood floor in the hallway that enters the kitchen. he is the level that shows how it has affected the floor